Bill Text: NY A01407 | 2019-2020 | General Assembly | Introduced

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Bill Title: Creates a right of action in favor of a contractor whose bid is denied against the winning bidder where such winning bidder knowingly misclassified one or more of its employees as independent contractors to avoid paying workers' compensation premiums on such employee; provides for payment of damages by the winning bidder.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-01-08 - referred to labor [A01407 Detail]

Download: New_York-2019-A01407-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          1407
                               2019-2020 Regular Sessions
                   IN ASSEMBLY
                                    January 15, 2019
                                       ___________
        Introduced  by  M.  of  A. PERRY -- Multi-Sponsored by -- M. of A. COOK,
          GOTTFRIED, RIVERA -- read once and referred to the Committee on Labor
        AN ACT to amend the general business law, in  relation  to  a  right  of
          action for violation of statutes in bids on construction projects
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new section
     2  399-ggg to read as follows:
     3    § 399-ggg.  Fairness in competitive bidding. 1.  For  the  purpose  of
     4  this section:
     5    (a) The term "person" shall include any individual, firm, association,
     6  partnership or corporation.
     7    (b)  The term "construction project" shall include any project involv-
     8  ing  the  construction,  modernization,   improvement,   rehabilitation,
     9  repair,  maintenance,  replacement  or renovation of a building, road or
    10  structure, or any portion of such a  project  performed  pursuant  to  a
    11  subcontracting arrangement.
    12    2. (a) Any person whose competitive bid for a construction project has
    13  been  rejected and instead awarded to another person may bring an action
    14  for damages in a court of competent  jurisdiction  against  the  winning
    15  bidder  if the winning bidder has violated the labor law or the workers'
    16  compensation law by failing to pay required taxes  or  secure  insurance
    17  pursuant  to  such  laws  for any reason including misclassifying one or
    18  more of its workers other than an employee in its bid cost.
    19    (b) The determination whether a worker on a  construction  project  is
    20  properly  classified  as  an  employee  shall be made in accordance with
    21  applicable state law.
    22    3. (a) A party unsuccessfully bidding on a construction  project  will
    23  be  deemed  to  have  suffered  an  injury  by virtue of not having been
    24  awarded the bid, regardless of whether the winning bidder realizes a net
    25  profit on the performance of the contract.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD06661-01-9
        A. 1407                             2
     1    (b) A winning bidder who is a defendant in an action brought  pursuant
     2  to this section shall not be liable for damages if he establishes, as an
     3  affirmative  defense, that the failure to comply with state laws requir-
     4  ing employers to pay state unemployment  insurance  or  secure  workers'
     5  compensation coverage resulting from the misclassification of an employ-
     6  ee as other than an employee if the bid was not a knowing violation.
     7    4.  Any  party who successfully maintains an action under this section
     8  shall be entitled to damages from the winning bidder in  an  amount  not
     9  less  than  ten  percent  of  the  amount of the successful bid, or such
    10  greater amount as shall be determined by the court, and in  addition  to
    11  any  other  damages  awarded, shall be entitled to the payment of all of
    12  its costs and reasonable attorneys' fees in bringing the action.
    13    § 2. This act shall take effect immediately.